Why do video games requires millions of dollars in order to be made?
Tags:100 million, budgets, low millions,
5
I see most budgets which customarily operation in a millions ((typically 15-100 million))…
WHY is it so pricey? Aside from profitable a employees, leasing developmental equipment, etc… we do not see how it would amass to be in a low millions.
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Advertising (couple of Mil), engagement of smaller companies to create engines to be used for the game. Publisher fee’s, Purchasing of Rights for story’s. Direct Staff Employment. Manufacturing The list goes on. The budgets covers everything to even the staff meeting with and the cakes and coffee.
-Big developers don’t actually pay for there machines, they are bought by sponsors. That’s why you see NVIDIA or ATI logo on games. Microsoft use this allot thats why many gmaes come with that big microsoft logo on the front.
-Most game projects apart from MMO’s have a development staff of less that 60. The smaller the group the faster the process.
-Printing of the games and Cd’s cost very little, we might pay $100 for the game but the disk and papers only cost less that $1 to make, the rest of the money goes to the companies revenue.
-Distribution to retailers is not done by the developers, The publisher manages the relase. Then the stores buy however many copies they want from the publisher warehouse. That’s why release dates vary.
- The most expensive part of the development process is Advertising and Delaying release. If you delay release for even a week your costs will jump by heaps. It will also have a huge investor back lash.
-Developers don’t actually make there money from the selling of games, there money comes from Investors. If the game doesn’t sell well then they lose some investors so next time they wont have as big of a budget.
making million of copies of the game costs money too
Well, there are many people that work on a game (a couple hundred minimum), so their paychecks are part of that.
Then they also have to buy the right computers and programs (which are very expensive, and there have to be enough for everyone who works on the game).
There is also advertising. It costs a lot of money to advertise a video game. Magazines, billboards, buses, websites, etc. That’s also a lot of money.
You also have to factor in the cost of making millions of copies of a game and the price of packaging, distribution, the right CD’s, etc.
Also, factor in the price of renting a location, and add it all up and it should be in the million range. All those computers are VERY expensive!!
You pretty much just answered the question.
If you have hundreds of ppl working on a game each one has a salary that must be payed. That can add up. Especially if the game takes over a year to develop.
Equipment is another big cost…gotta have machines to run it. There are also little things that could cost big bucks. If your design team has to do research for …animals…then getting them all tickets to zoo’s or hiring a professional animal trainer to bring them in can be expensive. (Yes production teams will do that)
Also if they have to buy copyrights for the game…music, concept, story ideas, etc…that can be millions by itself.
Game Developers also have to advertise…yes thats included in the cost as well. TV spots are expensive…
Let’s look at Final Fantasy 12
200 people X on average about $40k/year X 5 years = $40 million. And that’s just the payroll, which ignores the hardware, development software, office space, utilities, marketting, etc.